Latest news with #FederationofMalaysianManufacturers
The Star
9 hours ago
- Business
- The Star
Laos eyes more Malaysian investments
VIENTIANE: Prime Minister Sonexay Siphandone has called for deeper business cooperation and more Malaysian investments in Laos, saying the country offers strategic advantages and strong potential in key economic sectors. 'Many sectors of the Lao economy have potential for foreign investment, including Malaysian financiers,' the Prime Minister said while addressing the High-Level Laos-Malaysia Business Forum held recently in Kuala Lumpur. Malaysia is Laos' fourth-largest foreign investor, with total investment valued at US$946 million across 88 projects. The business forum brought together more than 180 participants from both countries, including government officials, ambassadors, and business leaders in energy, trade, agriculture, banking, tourism and logistics. Prime Minister Sonexay participated in the business forum during his official visit to Malaysia to attend the 46th Asean Summit. The event was jointly organised by the Lao National Chamber of Commerce and Industry, the Malaysian Business Council in Laos and the Federation of Malaysian Manufacturers, with support from the Ministries of Industry and Commerce and Planning and Investment, and Mega First Corporation. In his keynote address, Prime Minister Sonexay said Malaysia remains one of Laos' most significant foreign investors, with companies successfully operating in energy, infrastructure and financial services. Prime Minister Sonexay urged Malaysian companies to explore investment opportunities in agriculture, green energy, food processing, mining, logistics, digital tourism, and carbon credit markets. He pointed to Laos' 21 special economic zones, including the Amata and Sino-Agri Potash SEZs, as attractive areas for industrial and manufacturing investments. Malaysian investments into Laos span sectors such as renewable energy, transport, telecommunications, construction, banking and hospitality. The Prime Minister also outlined recent government reforms to improve the business climate, including the revision of the Investment Promotion Law in 2024, streamlined procedures, and new digital platforms for business registration and tax services. He said the Lao government is committed to supporting foreign investors and has created mechanisms such as the Lao Business Forum to ensure regular dialogue between the public and private sectors. Prime Minister Sonexay said the Laos-China Railway, upgraded road networks, new expressways, dry ports, and the recent launch of berth 3 of Vung Ang Port in Vietnam have significantly enhanced Laos' connectivity and cut transport costs. 'We have expanded connectivity with neighbouring countries by establishing ourselves as a regional transportation hub,' he said. Another notable recent development is the signing of a Memorandum of Cooperation between the Thanaleng Dry Port in Laos and Malaysia's Penang Port. This agreement aims to strengthen logistics and transport links by creating a strategic trade corridor connecting southern China to Malaysia's west coast via Laos and Thailand. 'This forum marks an important step forward in building lasting partnerships. I invite Malaysian businesses to visit Laos, explore our investment opportunities and grow with us,' he said. In 2024, the total trade between Laos and Malaysia exceeded US$43 million, up from US$30 million in 2023, according to the Lao Ministry of Foreign Affairs. - Vientiane Times/ANN
New Straits Times
2 days ago
- Business
- New Straits Times
NST Leader: Of PDPA and DPOs
"Give us time, give us time", is a refrain we often hear from Malaysian employers when the government introduces a new law or regulation. The amendment to the Personal Data Protection Act (PDPA) that makes the appointment of data protection officers (DPO) mandatory for companies processing more than 20,000 individual personal data or 10,000 sensitive personal data entries, is no exception, with the Small and Medium Enterprises Association of Malaysia, the Malaysian Employers Federation and the Federation of Malaysian Manufacturers complaining that the rule on DPOs is vague and they need more time. Are employers right? No, according to lawyer Arik Zakri. Malaysia, he says, ranks high on the list of countries where online fraud and personal data leaks are common occurrences. To him, there is no valid reason to delay the enforcement of the PDPA. Plus, nine months have elapsed since the Dewan Negara passed the amendment bill on July 31, 2024. Given that three public consultation papers have been issued since January last year, time shouldn't be an issue. As Arik points out, the employers would be missing a good legal defence if they delay the appointment of the DPOs. DPOs, being experts in their field, help companies safeguard personal data, which can serve as a defence in law if they are charged for offences under the act. The directors of the companies can claim they took every reasonable measure possible. Perhaps the employers are misreading the PDPA as amended. Not all companies are required to appoint DPOs. A good question for employers to ask is does this business require DPOs? The answer will be obvious: only companies that hit the 20,000 individual personal data or 10,000 sensitive personal data entries threshold need to do so. Companies that handle that number of personal data are into economies of scale to make higher profits, argues Arik. They should consider the money spent on appointing DPOs as a cost of doing that kind of business. Let's be blunt. Scams and data leakages in Malaysia have reached appalling levels. Malaysia's jurisprudence has not reached a stage where litigation based on breaches of data protection is widespread. We have yet to see big cases where punitive fines and jail terms being imposed on large corporations, such as telcos and financial institutions, for breaches of customers' personal data. The government is right in making the appointment of DPOs mandatory. Let's not forget that the PDPA was passed in 2013 and that is enough time for our employers to have prepared their businesses for this eventuality. Employers should adopt a more positive attitude and march in step with the government's efforts to protect the personal data of the people. It is also in the interest of the employers to hurry with the appointment of the DPOs because it can help mitigate the litigation risks that the companies may be up against. Employers should not underestimate the impact of a data breach suit; it can be so damaging — should the data subjects be numerous — that it can put an entity out of business. True, we haven't had such a case in Malaysia, but it doesn't mean it will never happen.
New Straits Times
6 days ago
- Business
- New Straits Times
LHDN's stamping rule sparks debate
KUALA LUMPUR: The Inland Revenue Board's (LHDN) reported push to enforce the stamping of employment contracts has sparked a wider conversation on the balance between legal compliance and regulatory fairness. While industry experts agree that stamping employment contracts may be a necessary step to align with the Stamp Act 1949, many are calling for the measure to be applied transparently, consistently and with adequate transition measures. Federation of Malaysian Manufacturers recently claimed that there has been an intensified audit since the Stamp Duty Audit Framework was introduced on Jan 1 this year. While there is a legal provision under the Stamp Act 1949 requiring employment contracts to be stamped, it has yet to be widely practised. According to the Stamp Act 1949, employment contracts fall under chargeable instruments listed in the First Schedule. For an employment contract, stamping involves a RM10 fee per copy and must be stamped within 30 days of signing. Failure to do so could result in a penalty of up to RM100 per document. KPMG Malaysia head of tax Soh Lian Seng said this purportedly increased enforcement represents a shift from past practice and may feel sudden to some taxpayers who have operated in good faith under previous norms and practice. Soh said many businesses were not aware that such contracts were considered dutiable instruments, especially given the absence of consistent enforcement or clear prior guidance. "While this could be seen as a necessary step toward ensuring compliance with existing law, it is important that enforcement is applied transparently and consistently. "The retrospective application of penalties may raise concerns about fairness and could undermine trust in the system," he told Business Times. Ultimately, Soh said enforcement and reform efforts must strike a balance between revenue objectives and maintaining Malaysia's appeal as a business-friendly environment. "Sudden or unclear enforcement actions risk creating administrative burdens especially for SMEs, and may erode confidence in the regulatory landscape. "Ultimately, maintaining ease of doing business should remain a central policy focus, as adding administrative requirements without a clear legal basis could create unnecessary challenges for SMEs and growing businesses," he said. Soh urged that stamping requirements be applied prospectively from Jan 1, 2026, giving companies time to align their HR and administrative practices with the law. Meanwhile, the Small and Medium Enterprises Association of Malaysia (Samenta) president Datuk William Ng said the issue goes beyond legal interpretation but it is about operational feasibility. Ng said the sudden shift from a passive regime to active enforcement, coupled with retrospective audits and penalties, is perceived as punitive rather than developmental. "We support the principle of legal compliance and the government's move toward a more self-assessment-based tax regime. "However, changes of this nature require proper transitional arrangements, targeted education and policy clarity to avoid undue burden and confusion, especially when it concerns operational matters like HR documentation. "Many SMEs now face the daunting task of reviewing and potentially stamping hundreds of existing employment contracts, which is neither practical nor proportionate," he said. In addition to the RM10 stamp duty per contract, Ng said the automatic late penalty of up to RM100 per instrument, even if disclosure is voluntary, compounds the financial pressure. Furthermore, he said the requirement to stamp offer letters or confirmation letters within 30 days is impractical. "Many companies issue letters months in advance, and new hires may withdraw or defer their joining, making the process inefficient and wasteful," he noted. At a time when the nation is trying to attract investments, digital nomads, and high-value talent, Ng said this enforcement sends the wrong signal. "It's not just a matter of cost – it's the uncertainty, the complexity and the sense that rules can be changed and imposed retroactively without due consultation. "We urge LHDN to implement a grace period, provide clear written amnesty guidelines for voluntary disclosures, and develop a microenterprise-friendly compliance mechanism," he said. Echoing the views, the Malay Chambers of Commerce (MCC) said such enforcement affected micro traders and small-scale industries as it outlines the rights and responsibilities of audit officers and duty payors, the types of duties and penalties. Its Malay Economy Action Council chairman Norsyahrin Hamidon said the measure was "rushed through, without any thorough comprehensive studies or taking into account workers' plight". Norsyahrin, nevertheless, said MCC agreed with LHDN's approach to educate and encourage compliance to ensure the Act is followed and reduce the burden on penalties or punishment. "However, we hope the education phase reaches the grassroots through the involvement of the chambers before it is enforced and is not just an announcement. "The issues involving cooling off period, waiver mechanism, penalties and punishments need to be clarified as it is confusing. "Among others, the waiver on stamp duty for workers with a monthly salary of RM300 and below is outdated and does not reflect the present salary structure and the labour market," he said. Norsyahrin said MCC was looking for an amicable solution and would like to discuss with relevant agencies, including LHDN and the Finance Ministry to share the concern of Bumiputra traders and to receive a detailed clarification. He said MCC is willing to work with the government and share its concerns with the National Chambers of Commerce and Industry Malaysia, with the view that more time should be given for more companies to be exposed. "At the same time, we urge the government to review the Stamp Duty on Contract Workers and postpone the implementation until the Stamp Duty Act 1949 is reviewed again, " he added. Business Times had reached out to LHDN for clarification on the policy shift, retrospective enforcement, and possible transitional relief measures, but no official response was received as of press time.
The Star
26-05-2025
- Business
- The Star
‘Supply chains could be disrupted'
FMM cites knock-on effect from extended migrant repatriation programme PETALING JAYA: The extended Migrant Repatriation Programme 2.0 may have a knock-on effect on the nation's manufacturing sector due to disruptions in the supply chain, says the Federation of Malaysian Manufacturers. Its president Tan Sri Soh Thian Lai said while the programme would have little impact on the manufacturing industry as a whole, the sudden exit of foreign workers could disrupt supply chains. 'Our members mostly do not employ undocumented workers due to stringent audit requirements and high compliance expectations from both regulators and international clients. 'But the sudden departure of undocumented workers from other sectors, coupled with the current freeze on foreign worker recruitment, could result in a disruption to our supply chains and have a knock-on effect in various sectors, including manufacturing. 'The government must ensure a continuous and legally compliant supply of foreign workers to meet the needs of businesses and maintain industrial sustainability,' he said when contacted. For the programme to achieve success, Soh emphasised the necessity of implementing it alongside coordinated enforcement, public education and structural reforms aimed at addressing the underlying causes of undocumented employment. 'The misuse of business licences by locals, which enables undocumented workers to operate outside the legal employment system, is also a systemic issue that is unresolved,' he said. Soh suggested the government fast track the anti-Ali Baba law to prevent foreign workers from illegally operating businesses. 'We have consistently highlighted that this law is critical to tackling the root causes of undocumented employment and illegal business operations,' he added. Soh also said that more clarification is needed with regard to plans to allow foreign workers to transfer between employers across sectors. He said the proposal was merely communicated through an internal circular by the Immigration Department and lacked subsequent public clarity and implementation details. 'This has created uncertainty among employers and must be addressed promptly if the government intends for this mechanism to work in tandem with the repatriation programme,' he said. The government initially implemented the programme from March 1 to Dec 31 last year. It allowed undocumented migrants to return to their home countries without facing prosecution by paying a compound fine of between RM300 and RM500. On Friday, Home Minister Datuk Seri Saifuddin Nasution Ismail said the programme would be extended until April 30 next year. Small and Medium Enterprises Association Malaysia president Datuk William Ng said the government should consider legalising undocumented migrant workers if they were already gainfully employed. 'If they entered Malaysia illegally, knowing full well they were going to be working without documentation, why would they surrender themselves?' he said when contacted. Unlike Singapore, Ng said Malaysia doid not have problems with regard to the availability of land for workers' housing. 'It makes little sense to approach the issue of migrant workers as though they are depriving local individuals of employment opportunities. 'They are not, and this is starving our industry of growth,' he said. Kuala Lumpur and Selangor Indian Chambers of Commerce and Industry president Nivas Ragavan said the extension was a welcome move but needed better coordination. 'While digitalisation has helped the process, inconsistent enforcement and sudden changes in requirements often cause delays. 'More coordination between agencies would help,' he said. He also mentioned that there continued to be a shortage, particularly in the semi-skilled and low-skilled sectors. 'The repatriation programme may worsen this in the short term unless it is balanced with streamlined legal recruitment channels.'
The Sun
09-05-2025
- Business
- The Sun
FMM welcomes govt moves to relax foreign worker rules
PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) said it strongly welcomes the government's recent policy to permit foreign workers to change employers across sectors. In a statement, the association said this decisive and pragmatic move comes at a critical time, offering much-needed relief to industries facing labour shortages amid the continued freeze on new foreign worker recruitment. FMM said the policy has the potential to help rebalance the distribution of labour across sectors, enabling companies with surplus workers to release them to sectors experiencing acute shortages, including manufacturing. FMM also supported the policy announcement on allowing applications on a case-by-case basis for the manufacturing sector, particularly to replace workers who have exited employment. This flexibility will assist in maintaining the continuity of operations and minimising disruption to production activities, it said. 'As a responsible employer organisation, and from a human resource management perspective, FMM underscores the importance of ensuring that the implementation of this policy aligns with regulatory compliance and ethical workforce practices,' FMM president Tan Sri Soh Thian Lai said. In line with this positive, FMM advocated for the portability of levy payments. In cases where a worker transfers to a new employer, the levy already paid by the former employer should be transferable. If the levy rate differs between sectors, the new employer should only be required to pay the difference. Soh said this approach promotes financial fairness and avoids double-burdening employers. FMM proposed that the Immigration Department to directly manage the intersectoral transfer process. It said a centrally coordinated system would ensure uniformity in procedures, reduce opportunities for abuse, and speed up approvals. The federation also urged the adoption of digitised processing with end-to-end visibility to enhance efficiency and transparency. An online platform featuring status tracking, audit trails and defined approval timelines would reduce administrative overhead and strengthen compliance monitoring, it said. In addition, FMM said, worker consent and safeguards must be prioritised. Transfers should only proceed with the worker's informed, voluntary consent and be properly documented. FMM noted that a formal grievance mechanism should be in place to resolve any disputes arising from such transfers. Finally, FMM recommended integrating databases for effective labour matching. 'Specifically, the MyFutureJobs platform should serve as a national clearinghouse to align surplus labour with industry demand. Employers should be encouraged to update their workforce status to promote transparency and reduce reliance on intermediaries,' Soh said. He noted that with these measures in place, the new policy can deliver its intended benefits while protecting the interests of all stakeholders involved.
